Yanks, A-Rod settle on 30 million reasons to break the HR record

Because it’s been five whole days since we last heard from Alex Rodriguez, let’s check in on how everyone’s favorite third baseman is doing. Courtesy of The New York Times and Murray Chass comes the news that the Yanks and A-Rod have cleared that last hurdle: The two sides have figured out the home run incentive clauses of A-Rod’s new contract.

Chass details how A-Rod could earn up to $30 million more if he tops various home run milestones:

Rodriguez will make $275 million over 10 years in his Yankees contract, which becomes the biggest baseball contract ever. Terms of the contract are expected to be confirmed early this week.

The nonguaranteed part of the contract will be the marketing agreement, which the commissioner’s office and the players union have approved. The Yankees and Rodriguez had to keep changing the nature of the agreement to gain approval because players cannot receive bonuses for achievements like home run totals.

In the approved agreement, Rodriguez will share in revenue the Yankees generate by marketing his home run milestones…Under the agreement, Rodriguez will receive $6 million when he reaches each of five milestones: the career home run totals of Willie Mays (660), Babe Ruth (714), Henry Aaron (755) and Barry Bonds (762), and when he breaks the record…

He will get the marketing money in exchange for making certain appearances linked to his home run milestones over and above what players are required by their contracts to do.

Those are some pretty lofty numbers both in terms of home run and salary, and of course, we won’t know how much of this non-guaranteed $30 million A-Rod will see until he actually reaches — or fails to reach — those home run plateaus.

With these new performance/marketing bonuses in place, A-Rod is sacrificing certain other incentive clauses. Gone are the monetary rewards for All Star Game appearances and MVP awards. For $27.5 million, A-Rod better be making the All Star team.

So in the end, A-Rod gets his deal potentially worth over $30 million. If all of these bonuses kick in, he’ll earn $305 million over 10 years. It’s what the Yanks were willing to give him in October before he opted out, and it is seemingly what he and Boras thought he would be getting anyway. But, as we’ve said before, the Yanks turned this deal on their terms. Hank Steinbrenner, the new face behind the game’s most powerful franchise, faced down the game’s most powerful agent and player and won. We get A-Rod; the Yanks get their win. Sounds good to me.

Just saw this and 20 minutes later you guys have an article, love it. I agree it’s a win for us. A-Rod gets what he’s arguably worth, 2.5 million more than the substantial amount of money he was making before and then gets to put his hand back in the jar for milestones. I like the contract, it makes sense. Now if only they could incentive him some postseason skills.

barry

I was just reading an article about how Texas is desperate for a centerfielder especially after Hunter went to the angels. Maybe we could offer them a package for Jarrod Saltalamacchia, that kids got alot of potential. I’d be willing to give up Melky for him. I could be crazy though.

Greg

saltalamachia is ten times more valuable than melky

Chofo

The Arod contract has its goods and not so goods:

1) In the short term is great. He’s making annualy the same he was going to make this last 3 years under the last contract. It also fills the huge hole in 3b and RH cleanup bat with the best player on the planet. Plus the new stadium and TV ratings.

2) Those middle years look OK. He’s production will be above avarage and he’ll be coming close to the record and a chance to make history in pinstripes. The Yankees will be the only ones who can put in the same sentence names like Ruth, Gerigh, Manttle and Arod.

3) The final years look ugly. 10 years is not too much, is way over that. He’ll be a DH making tons of money for league average production. Chances are he could be done before the end of the contract.

And the risks of the contract are huge too: remember Griffey? And how is Boras going to react to the Yankees when they need his next client? Let’s pray everything works out well and he ends up with some rings and the record, or this could be THE biggest mistake in baseball history.

barry

Arod keeps himself in good shape though, he’s smart and DH will be kind to him, remember that.

Lil Jimmy Norden

It may be mildly overpaying for latter years, but I seriously doubt it would be the biggest mistake in baseball history. That’s a big statement.

Chofo

Yes, it has the risk of beeing the biggest mistake in baseball, and at the same time has the opportunity of beeing the smartest move too. He could either be Ken Griffey Jr, injured all the time and never reach 660 HR, or he could be the second coming of the Babe, earning the right of calling the new stadium “The house that Alex built” thru his records and rings.

Bart

look at the Linebrink deal – in 6 years time the ARod will look cheap IF baseball continues to grow in attendance and media revenue. The deal Texas signed was fair by standards — the uncertainty is time – does he age well; will the desire be there; can he avoid even the seemingly inconsequential wear and tear that slows bat speed; and the Matsui – Damon types of injuries that ruin a season or two

A different question is who hits behind him and protects him
– in the playoffs – he was patient in game 1 because Cleveland wouldn’t throw strikes – they did not have to risk him until that got a lead
— teams could go whole seasons not pitching to him if Posada is less than awesome, and Gimabi does not return to reasonable form he might return to his last 3 yrs averages, but as he ages he wil need support.
itting RH in Yankee Stadium – old and new – he needs ten years of protection – where does that come from –

beantownbosoxh8er

No trade clause?
What other items are in the contract? any opt outs? just kidding.
I am curious to see what they gave him in veto power of trades , as Bart said this may look cheap in a few years.
And if it does look like he is a steal in the next few years is he going to hold out for more money?

TurnTwo

ARod will be a 10-5 guy, meaning he’ll have full no-trade powers, even if its not included in the contract.

and FYI, Olney think the Twins have settled on a Yankees package that includes Hughes, Melky, and AJax. He also thought the Yankees would never give up AJax an Melky, 2 CFs, at the same time in the same deal.

JP

The Yanks are crazy if they make that deal. Unless they’re not convinced that A-Jax will pick up right where he left off?

zack

Crazy? Not so sure. If that is the whole package, then you can probably bet the Yanks go after Rowand or Jones, and then what have they really lost? Basically Hughes. A-Jax is looking good, but we’re still talking AA. Hughes would hurt a lot because I love the guy, but you are replacing him with Santana. Its a lot to give up for one guy, but that one guy happens to be Johan freaking Santana

JP

Giving up the future ace and future CF’er of the future is a lot to give up for a guy that will command upwards of $20M/yr. Plus they’re throwing in our current CF’er. It’s a good deal for next year but long term I don’t like it.

zack

The “potential” CF of the future and future ace. On the other hand, the Yanks still have Joba, Wang and Kennedy with Horne coming PLUS Santana…

JP

I wonder if he still gets the incentive money if Barry’s record is erased :-P

LiveFromNewYork

The incentive money includes Mays records, Aaron’s record etc. I don’t think he loses that much if Bonds’ record is wiped out (they were probably thinking about that anyway).

I think it’s a good deal for both the Yankees and Arod. Arod wants that ring and maybe now that all this contract crap is behind all of us, he’ll settle the hell down, play ball and bring 27 to the Bronx.

dan

He did have his best season this year while hearing constant questions about his contract. There was probably more to it than that, but it did happen.

http://yankeesetc.blogspot.com/ Travis G.

idiotic. he’s coming off his CAREER YEAR! what happens when he never matches 2007? another 2006 and he’ll get booed. a HR incentive?! wtf? every ab he’ll be swinging for the fences to get those bonuses. when a runner’s on 2nd with 2 outs, tie game, why shouldn’t he swing for the fences instead of just trying for a game-leading single? so goddam stupid. i cant believe Cash and Hank are giving in to this. let him hit the market where no one can afford him. BoRod has won again.